Insurance Company Report Cards: What Grade Did Your Company Bring Home?

Here is a brief explanation of how A.M. Best rates insurance companies. You should strive to find a company that has at least an A rating and preferably an A+.

Best's A+ Superior

This is the highest grade an insurance company can achieve. Companies with a Best's A+ have a superior proven ability to meet their financial obligations with their policy holders.

Best's A Excellent

Companies in this classification also have an excellent financial performance. Not as strong as an A+ company but still more than capable of meeting their financial obligations.

Best's B+ Very Good

Again, going down the list....these companies have shown a "Very Good" ability to meet their financial obligations to their policy holders.

Best's B Good

Insurance companies with a B show a good ability to meet their obligations, but not as strong as the previous grades.

Best's C+ Fairly Good

Again, a fairly good overall performance.

Best's C Fair

And finally, a C means the insurance company has achieved a fair ability to meet their financial obligations.